Trump’s tariff fight upsets the ports that bring Texas $700 billion a year in business

HOUSTON – The Houston Chronicle reports leaders of Texas ports and the companies that rely on the ports have spent the past two weeks of tariff upheaval doing what the ship captains do practically every minute of every day: Study the information and keep an eye on the horizon. The one thing they agree on is nobody really knows for sure what the conditions will be for very long at the 23 Texas ports that by many estimates generate more than one-quarter of the state’s gross domestic product. A few predict calm seas. Others see nothing but icebergs. More still cannot even predict what waves and thunderstorms lie ahead. “We’re trying to assess the situation,” Port of Freeport Executive Director Phyllis Saathoff told the crowd at a Greater Houston Port Bureau luncheon on April 10.

Despite the uncertainty of global trade markets as the Trump administration announces American tariff policy, then alters it, and then alters it again, port officials in Freeport and Houston have so far declined to elaborate on what immediate steps they are taking — including the possibility of slowing investment on their own docks or reducing their workforces. Citing the uncertainty and near-daily changes in what tariffs will be in effect and what specific goods will cost, they said it is too soon to either sound an alarm or give the all-clear. “Looking ahead, we will approach our work as we always have,” Port Houston public relations director Lisa Ashley said in a statement. Companies, however, are not waiting to take action, and have been doing so since before tariffs were even discussed, said Tim Sensenig, CEO of TMSfirst, a Spring-based transportation management company whose software helps companies with some 20 million shipments globally each day. Many companies — Sensenig noted the apparel industry — have already changed their patterns to get inventory moved in before tariffs can take effect. Others, such as Apple’s widely reported last-minute flight of Iphones, were temporary measures as they examined the long-term possibilities. “The last thing they want to do is be caught with their pants down with no inventory,” he said of retailers. Other sectors are taking more decisive steps. The impacts of proposed tariffs on auto imports and exports are already leading to layoffs at some automotive factories, as well as declines in the number of cars arriving at Texas ports.